The '''Federal Reserve System''' (also known as the '''Federal Reserve''' or simply '''the Fed''') is the central bank
ing system of the United States
. It was created on December 23, 1913, with the enactment of the Federal Reserve Act
in response to a series of financial panic
s (particularly the panic of 1907
) that showed the need for central control of the monetary system if crises are to be avoided. Over the years, events such as the Great Depression
in the 1930s and the Great Recession
during the 2000s led to the expansion of the roles and responsibilities of the Federal Reserve System.
[ "It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded."]
The United States Congress|U.S. Congress
established three key objectives for monetary...